Facing a projected deficit of more than $2 million for next school year, declining enrollment, and flat revenues from the state, the Kenowa Hills Board of Education voted Monday night to privatize its transportation department and its small custodial staff.

School officials said the move would help keep some of the pending budget cuts away from the classroom.

Votes on the two moves came after the board met in closed session for more than two hours while those attending Monday night's meeting waited in the large meeting room at the Kenowa Hills Middle School.

The votes affects nearly 30 bus drivers and four custodians. It will save the district an estimated $500,000 next school year.

Kenowa's bus drivers fought to keep their jobs with the district and had submitted a proposal to modify their current contract with the district that would have saved an estimated $157,000 next year. In the end, the school board rejected the bus drivers' proposal in favor of one of the three proposals submitted by private transportation providers.

After the board voted to award the transportation contract to Durham Schools Services, of Warrenville, Ill., a collective groan came from the more than 50 bus drivers and supporters who had packed the meeting room.

Drivers and supporters stood up to leave, but then moved toward the three-person management team from Durham and began to shake the Durham officials' hands, welcoming them to the district. "In all of the years I have been doing this, this has never happened," said Justin Grygiel, director of business services for Durham.

"I think that shows the class that these drivers have shown throughout these negotiations and their love for this district," said Kenowa Hills Board President Matt Rettig.

The school board will now turn its attention to the ongoing negotiations with the teachers' union.

Kenowa Hills bus driver and contract negotiator Kathy Clark said the drivers were disappointed with the decision to privatize, But, she added, the drivers are glad that if the move was going to be made, that the district hired Durham. "We have been very respectful during this entire process," Clark said. "The drivers said that if we didn't get the contract, then Durham was our next choice, But we are very disappointed that the board didn't accept our contract."

Board members said the bus drivers' proposed contract went a long way toward reaching the financial savings the district needed but didn't address the costs of purchasing new buses for the fleet. Durham will lease the district's current fleet of buses, but as new buses are purchased for the district, Durham will own those buses and lease them back to the district.

Durham currently has contracts with more than 450 school districts across 32 states and with many districts in Canada.

Durham has contracts with the West Bloomfield, Redford Union, and Rochester school districts in Michigan, but this is the company's first move into West Michigan. "Our goal is to hire as many of the current drivers as we can," Grygiel said.

Most drivers currently with Kenowa Hills who are hired by Durham will see an increase in hourly wage and a monthly stipend toward their health insurance. All of the current drivers who are hired by Durham will start at $19 an hour - at least $1 more than most drivers earn with Kenowa.

What drives will lose in the transition if hired by Durham is 16 paid days off annually and being part of the Michigan Education Retirement System. Drivers in the district currently average $19,000 annually in pay for their services.

Grygiel said what the drives will gain besides a higher wage is better training to do their jobs. "What we do differently than other companies is hire local drivers, pay well, have constant professional training, and make sure that our
equipment is safe," he said.

Durham will hire a supervisor, mechanic, and dispatcher for the district. The district's name will still be painted on the buses.

The board also voted to privatize the district's remaining four custodial positions. The district has been using a private contractor for custodial services for years, but had continued to employ four custodians of its own. Enviro-Clean will now employ all of the district's custodial staff. "Enviro-Clean has been very good for the district and will not only take on these four positions but will also add a district supervisor while saving the district $300,000 annually," said Kenowa Hills Superintendent Gerald Hopkins.

Hopkins called Monday night's meeting "the low point of his educational career." "I didn't get into administration for years and years of reductions," he said. Still, he said, the move to privatize transportation and custodial staff was in the best interest of the district long-term.

Grygiel said he expects to meet with Kenowa Hills bus drivers informally in the next couple of days and then over the next few weeks to begin the transition process.